Purchasing your first home is likely to be the largest financial investment you will make in your lifetime. Something that many of us Kiwi’s dream to acquire at some point in our lives, and although it’s a very exciting time, the buying process can be tricky business.
The multitude of lenders available, how to get the best deal and rate, what deposit you’ll need, what area to purchase, what other costs are involved? This is where having a mortgage broker on your side can be beneficial.
We’re here to give you some pointers and guide you in the right direction. To do’s and don’ts of home buying, if you will. Here are our top 5 mistakes to avoid when purchasing that all important first home;
1. Poor account conduct
As part of the pre-approval process, banks will look over your bank statements to review your ingoings/outgoings and daily activity. Dishonoured direct debits and accounts going into overdraft can lead to your home loan being declined. Try to keep your bank accounts in good order.
2. Getting that pre-approval first
Before you go house hunting, get a home loan pre-approval in place. This will then give you confidence in securing a home, and a good starting point for house hunting.
3. Putting offers in the wrong places
If it seems too good to be true, it probably is. Get a thorough building inspection done – pay extra if you need to – but ensure they check over everything. Roof to underfloor. You don’t want to think you’re snagging a deal, and stumble across any issues later.
4. Not accounting for the extra costs
Once you have your deposit ready to go, you will you need to factor in and set aside some money for the extra purchasing costs that come with the house buying process ie. LIM report, solicitor, building inspection, meth test. Allow for anywhere between $1500 and $3000 for these costs.
5. Making the minimum re-payments
Adjusting to those new mortgage payments can take time, and initially you can feel quite stretched. But once you’ve adjusted to the new reality of a mortgage repayment, see if you can stretch your budget a bit further and pay off a little more than the minimum mortgage repayment amount – even by $5- $10 . A small amount can make a big difference and shave years off that 25 or 30yr mortgage term. Remember, the faster you pay, the less you pay!
Have any queries, or want to have a chat?
Give us a call 020 438 5626
why you should use summit MORTGAGES?
- Professional, experienced & trustworthy.
- We give sound financial advice.
- We work for you. You are our top priority.
- Save you time.
- Get you a great deal
- Have an easy and reduced stress experience
- We aim to form long term client relationships that last for 25 years +. This means we will provide ongoing support and advice long after the initial transaction takes place
- Follow up after loan draw down to check in. Then help with refixes or other advice.
- Work hard to get the best overall deal for you by having a the right loan structure, negotiating lower interest rates, better cash backs and ensuring the T&C’s are fair to you.